TARGET MARKET:
Self employed consultants working outside their home country
BRIEF DESCRIPTION:
The consultant negotiates with the user of his/her services to enter into a contractual relationship with his/her Isle of Man consultancy company so that gross fees can be invoiced from and paid into the Isle of Man.
The consultant then draws a salary from his/her consultancy company to meet day to day living costs in the country where performing services.
BENEFITS:
Subject to tax rules in country where services are provided, the profit made in the Isle of Man consultancy company is accumulated free of taxation.
OTHER ISSUES:
VAT needs to be considered as well as host country’s direct tax rules.
COSTS:
£1250 Formation fee of an Isle of Man company
£2000 Minimum annual running costs of Isle of Man company.
Time costs for invoicing, banking, transferring funds etc. are all in addition to the minimum charge. A fixed first year's fee can be agreed before commencement.
ALTERNATIVE:
Isle of Man Employment company, owned by Deloitte & Touche, employs a number of different consultants to minimise administration and formation costs.
FOR FURTHER INFORMATION ON THE ABOVE OR ANY OF THE SERVICES WALBROOK TRUSTEES (IOM) LIMITED MAY BE ABLE TO OFFER PLEASE CONTACT EITHER NICHOLAS WILLIAMSON OR CHRISTOPHER
Deloitte & Touche is authorised by the Institute of Chartered Accountants in England and Wales to carry on investment business in or from the Isle of Man and the United Kingdom.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.